Correlation Between Advantage Solutions and AMREP
Can any of the company-specific risk be diversified away by investing in both Advantage Solutions and AMREP at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Advantage Solutions and AMREP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advantage Solutions and AMREP, you can compare the effects of market volatilities on Advantage Solutions and AMREP and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Advantage Solutions with a short position of AMREP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advantage Solutions and AMREP.
Diversification Opportunities for Advantage Solutions and AMREP
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Advantage and AMREP is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Advantage Solutions and AMREP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMREP and Advantage Solutions is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Advantage Solutions are associated (or correlated) with AMREP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMREP has no effect on the direction of Advantage Solutions i.e., Advantage Solutions and AMREP go up and down completely randomly.
Pair Corralation between Advantage Solutions and AMREP
Considering the 90-day investment horizon Advantage Solutions is expected to generate 2.75 times more return on investment than AMREP. However, Advantage Solutions is 2.75 times more volatile than AMREP. It trades about 0.14 of its potential returns per unit of risk. AMREP is currently generating about 0.06 per unit of risk. If you would invest 115.00 in Advantage Solutions on June 1, 2025 and sell it today you would earn a total of 67.00 from holding Advantage Solutions or generate 58.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advantage Solutions vs. AMREP
Performance |
| Timeline |
| Advantage Solutions |
| AMREP |
Advantage Solutions and AMREP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advantage Solutions and AMREP
The main advantage of trading using opposite Advantage Solutions and AMREP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advantage Solutions position performs unexpectedly, AMREP can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in AMREP will offset losses from the drop in AMREP's long position.| Advantage Solutions vs. Cimpress NV | Advantage Solutions vs. Emerald Expositions Events | Advantage Solutions vs. Marchex | Advantage Solutions vs. Townsquare Media |
| AMREP vs. ABM Industries Incorporated | AMREP vs. Copart Inc | AMREP vs. Dolby Laboratories | AMREP vs. Relx PLC ADR |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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